Topic > Federal Express Product Analysis - 1222

IntroductionFederal Express' core products deliver packages to popular locations in a short time. In this case study, we will focus our discussion on the most profitable services, namely Priority One, Standard Air Service and Courier Pak (Table 1). Federal Express product. FedEx specializes in guaranteed overnight delivery of high-priority packages, documents and heavy items. freight transportation.How does Courier Pak fit into Federal Express?For service usersCourier Pak is a guaranteed overnight delivery service and is expected to be delivered anywhere within the FedEx system at a cost of $12.50 weighing up to 2 pounds, regardless of the distance to the destination. Courier Pak's waterproof and tear-proof envelope offered customers a unique physical shipping method and provided protection for documents and meets their security needs. For Federal Express, as mentioned in the case, there is significant market potential (nearly 870,000 pieces per day) for documents and small package shipping. An analysis shows that at FEC stations, Courier Pak volume is 30% higher than Priority One. This means that the Courier Pak market has growing potential. Furthermore, its variable cost was found to be the lowest among all other overnight delivery services provided by Federal Express (Table 2). This means Courier Pak could be a more profitable product. Our Analysis Current Situation Typical users of air transportation were producers of time-sensitive and expensive finished goods, such as valuable architecture and sensitive documents. But in 1976, a spring survey showed that only 24 percent of customers used both Courier Pak and Priority One services, while less than 1 percent of them used Courier Pak alone. Also, the cap... in the center of the card... yes. You can demonstrate to potential customers through experiments that using Courier Pak for important documents is much safer than using other types of paper bags. In the announcement, FedEx may point out that customers only need to spend a specific price for packages weighing up to 2 pounds, packages can be delivered anywhere within FedEx's operating territory via overnight Courier Pak service. Emphasized on the speed, reliability and security provided by Courier Pak compared to its competitors. And the people-oriented philosophy applied by FedEx, they consider this as their core business while others treat it as a secondary business. Conclusion Based on product market fit, Courier Pak is a complete fit for the company, from an environmental, business, cost and competitive perspective. So we think FedEx should pay special attention to Courier Pak.